GREAT BAY/WILLEMSTAD--For the first time under the new Deposit Guarantee Scheme, people who keep money at covered banks and credit unions in St. Maarten will have a legally established level of protection if their financial institution can no longer repay depositors.
The Centrale Bank van Curaçao en Sint Maarten, CBCS, has started implementing the Deposit Guarantee Scheme, DGS, for St. Maarten, which will officially take effect on September 28, 2026.
In simple terms, the DGS acts as a financial safety net for depositors. If a bank covered by the scheme fails and can no longer return customers' money, eligible deposits will be protected up to Cg 50,000 per person, per bank. For credit unions, the protection will be up to Cg 25,000 per person, per credit union.
The protection is based on the total amount a person has at one institution, not on the number of accounts they hold there. For example, if someone has Cg 30,000 in a savings account and another Cg 20,000 in a checking account at the same covered bank, that person has Cg 50,000 in total deposits at that bank and that amount would fall within the maximum protection level.
If a person has more than Cg 50,000 at one covered bank, the DGS guarantees up to Cg 50,000 of that amount. The same principle applies to the Cg 25,000 limit for deposits at a covered credit union.
The scheme applies to credit institutions licensed by the CBCS to conduct banking or credit institution business in St. Maarten.
The DGS becomes important only in the serious situation where one of those institutions is no longer able to meet its obligations to depositors. It is therefore not a program that people have to apply for in advance, and it is not an additional savings account. Instead, it is a protection mechanism that stands behind eligible deposits at participating institutions.
Under the system, affected account holders are to receive the protected portion of their deposits within 20 business days after the scheme is activated.
The money needed to provide that protection will come from a dedicated Deposit Guarantee Fund, DGF. The fund will be managed by the Deposit Guarantee Fund Foundation St. Maarten, which is being established by the CBCS.
Banks and other covered credit institutions will be required to make annual contributions to the fund. The amount contributed by each institution will be based on the volume of guaranteed deposits it holds. The CBCS and the DGF Foundation will jointly carry out responsibilities connected to the operation of the scheme.
The legal framework for the St. Maarten DGS followed publication of the relevant national decree on August 14, 2026, AB 2026, no. 29. On the same date, the Minister of Finance signed a ministerial regulation providing further details for the operation of the scheme, AB 2026, no. 31.
With St. Maarten joining the system, depositors throughout the Curaçao-St. Maarten monetary union will now be covered by a deposit guarantee scheme.
The CBCS said the introduction is intended to strengthen confidence in the financial system and contribute to the stability of the monetary union.
For ordinary customers, the most important point is straightforward: from September 28, eligible money held at a covered St. Maarten bank will be protected up to Cg 50,000 per person at that bank, while eligible deposits at a covered credit union will be protected up to Cg 25,000 per person.
The CBCS said it will continue working with stakeholders to explain how the new system works and what depositors should know. A dedicated website has been launched atwww.dgs.sx, while questions can also be directed to the DGS helpdesk atDGS@centralbank.sx.
A broader public awareness campaign is also expected later this year.
